Commercial property owners are often faced with the burden of paying rates even on properties that are vacant. This can be a significant financial strain, especially during times when the property is not generating any income. In this article, we will discuss the rates payable on empty commercial property and provide insights into how property owners can navigate this issue.
The rates payable on empty commercial property are often referred to as empty property rates or business rates. These rates are charged by local authorities to property owners based on the rateable value of the property. The rateable value is determined by the Valuation Office Agency (VOA) and is used as the basis for calculating business rates.
In most cases, commercial properties are subject to business rates whether they are occupied or vacant. However, there are certain exemptions and relief schemes in place that property owners can take advantage of to reduce the rates payable on empty commercial property.
One of the common exemptions for empty commercial property is the three-months exemption. This means that property owners are exempt from paying business rates for the first three months that a property is vacant. After the initial three months, full business rates are payable unless the property qualifies for any other relief schemes.
Another relief scheme that property owners can benefit from is the small business rate relief. This scheme is available to properties with a rateable value below a certain threshold and provides a discount on business rates. Property owners can apply for this relief even if their property is vacant, as long as they meet the eligibility criteria.
Additionally, there are other discretionary relief schemes that local authorities may offer to property owners with vacant commercial properties. These schemes are designed to provide financial assistance to property owners facing difficulties in renting out their properties. It is advisable for property owners to inquire with their local council about any available relief schemes that they may qualify for.
Property owners also have the option to appeal the rateable value of their property if they believe it has been incorrectly assessed by the VOA. By submitting a formal appeal, property owners can potentially reduce the amount of business rates payable on their empty commercial property.
For property owners who are unable to secure tenants for their vacant commercial properties, there are alternative options to consider. One such option is to explore the possibility of temporary leasing or licensing arrangements with shorter terms. By entering into temporary agreements, property owners can generate income from their vacant properties while also potentially reducing the amount of business rates payable.
Another option for property owners is to consider repurposing their vacant commercial properties for alternative uses. This could involve transforming the property into a different type of commercial space or even residential units. By repurposing the property, property owners can potentially attract new tenants and generate income while also reducing the burden of empty property rates.
In conclusion, rates payable on empty commercial property can be a significant financial burden for property owners. However, there are various relief schemes and options available to help mitigate this burden. By exploring these options and seeking assistance from local authorities, property owners can navigate the challenges of vacant commercial properties and find viable solutions to minimize the rates payable on their properties.